Generally, a high ________ ratio could lead investors and creditors to view the company as being very risky.
A) debt to owners' equity
B) acid-test
C) diluted earnings per share
D) inventory turnover

Question

Quizplus · Accepted Answer

A high debt to owners' equity ratio indicates that the company is relying heavily on debt to fund its operations. Many investors and creditors would view this as a risky approach.

Generally, a High ________ Ratio Could Lead Investors and Creditors